Ford to reduce dealerships

Ford would like to reduce its total number of U.S. dealerships to 3,000, Jim Farley, Ford’s group vice president, global marketing, sales and service, said at an investor conference in San Francisco today.

At the end of 2009, Ford had 3,553 dealers in the U.S., but the company is discontinuing its Mercury brand, which will make it difficult for some of Ford’s 276 stand-alone Lincoln Mercury dealers to survive.

Farley said Ford is better able to encourage its dealers to consolidate now because its relationship with dealers has improved in recent years.

“The dealers are full partners in every decision the company makes," Farley said at a Bank of America investor conference. “When you are trying to consolidate your network from 6,000 down to 3,000, the dealers are on your side, and they will help you participate in the consolidation."